This chic side hustle is gaining traction: Renting out your clothes

A file photo of clothes hanging. (Pexels/Photo by Ksenia Chernaya)

Emilie Nasseh, a 30-year-old living in Manhattan, has made up to US$2,000 a month through an unconventional side hustle: renting her clothes and accessories.

Nasseh uses Pickle, a peer-to-peer clothing rental app where users share their wardrobes for profit. Some lenders may also list their clothes for sale. Among Nasseh’s most popular rentals were handbags, including a Chanel mini wallet that has been rented out nearly every week over the past year.

“I’m very happy to allow others to use items in my closet who haven’t had availability to that luxury. I’m not using (the item), so it’s kind of a win-win scenario for everyone,” she said, noting that she may make $500 during a slow month.

Nasseh is one of tens of thousands of Millennials and Gen Zers who use clothing rental apps such as Pickle, which launched in 2022. It’s not a new concept, but unlike Rent the Runway and other clothing rental apps, Pickle doesn’t require a subscription and it’s supplied by users’ closets.

From Airbnb to car rental site Turo, there’s been a growth of share economies where people can earn money by lending out their belongings. It’s signaling that Americans feel increasing economic pressure from the hiring slowdown of recent college graduates and rising costs of everyday essentials, among other factors.

There are more than 230,000 items listed on Pickle, spanning more than 2,000 brands — from high-end luxury like Chanel and Louis Vuitton to mid-tier brands such as Realisation Par and House of CB, according to Pickle. Top lenders average more than $3,000 a month, according to the company.

For Nasseh, the side hustle mostly funds necessities: everyday home items or rent. While others may buy more clothes with their extra income, she says she doesn’t “have that luxury.”

The era of side hustles

The costs of social outings can add up, and some young adults are compromising by renting clothes instead of buying high-end luxuries, said Thomaï Serdari, a New York University marketing professor.

“Millennials trained us to think about the sharing economy … and now Gen Z is taking it one step further, because Gen Z is both cash-strapped, has a greater appetite for luxury consumption, and they believe in a hustler kind of mentality,” she told CNN.

Over a quarter of American adults take on side jobs, though it’s at its lowest percentage since 2017, according to a July survey from Bank Rate. And Gen Zers (34 per cent) take on side hustles more frequently than other age groups.

Lauren Baldinger, 24, of New York City, not only lends her outfits on Pickle, she also rents and sells handmade beaded bags from her business, Lolo. One black bag can be bought on the app for $148 or rented for $20.

She estimated that she earns between $200 and $300 on an average day. She often buys clothes solely for renting on Pickle. For example, one dress from Italian luxury brand Missoni retails for $2,750, but she rents it for $295, eventually offsetting the expense.

“I view it as a business, so I have to keep investing to keep my closet relevant,” she said.

Battling overconsumption

Pickle’s co-founders, Julia O’Mara and Brian McMahon, told CNN that circulating clothes among users has fed into a trend of avoiding overconsumption or turning to fast fashion.

“They want to wear something new. They want to wear a really beautiful sequin dress. They want to try out Cult Gaia, but couldn’t afford to shell out $800 on it. Now you can go and rent it for $60,” said O’Mara.

Jill Lin, who is based in New York City and uses both Pickle and UK-based clothing rental platform By Rotation, said that “it’s more sustainable fashion.” Renting discourages people from buying clothing they’ll only wear once, she explained.

Lin said she’s made more than $42,000 annually using both By Rotation and Pickle but has had more traction on the latter. She’s noticed that the most popular rentals on Pickle are often dresses that cost upwards of $1,000 but may rent for $200 or less.

Samantha Mason, 31, of Los Angeles, said she rents more than she lends on Pickle — but would like to grow her closet and renting business. She compared Pickle to subscription-based fashion rental platforms like Rent the Runway, but noted that Pickle provides “instant gratification” with the possibility of same-day or last-minute rentals.

She said she can find virtually anything on the Pickle app, allowing her to keep an item for up to a week for some events, without having to pay the full price for accessories like Chanel bags or Miu Miu items.

The desire for sustainability will be a growing force for sharing apps over the next decade, said Serdari, the NYU professor. Young consumers care about sustainability, she noted, but are still chasing a “treasured item.”

“There is still a lot of consumption,” she added. “People are overextended because they want to have both the luxury accessory or apparel, and go to very fancy restaurants and very fancy events and have experiences with travel.”

By Auzinea Bacon, CNN